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Labour Market Institutions and the Employment Intensity of Output Growth

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Author Info
Gebhard Flaig () (University of Munich)
Horst Rottmann () (University of Applied Sciences Amberg-Weiden)

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Abstract

This paper deals with the effects of labour market institutions on labour market performance. We analyse as an indicator for the labour intensity of output growth the employment threshold (the minimum growth rate of output necessary to keep employment constant). We show for a sample of 17 OECD countries for the period 1971 to 2002 that the strictness of employment protection raises the employment threshold in all econometric specifications. A higher wage bargaining co-ordination and a higher tax wedge reduce also the labour intensity of production, although the effects are not in all econometric specifications significant.

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Publisher Info
Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 229 (2009)
Issue (Month): 1 (February)
Pages: 22-35
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Handle: RePEc:jns:jbstat:v:229:y:2009:i:1:p:22-35

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Web page: http://wiwi.uni-giessen.de/home/oekonometrie/Jahrbuecher/
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Related research
Keywords: Employment protection; labour market institutions; labour demand; international comparison; employment threshold;

Find related papers by JEL classification:
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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This page was last updated on 2009-10-24.

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